Ripple seeks documents on Ethereum and Bitcoin from the SEC as it alleges that the regulator is withholding “exculpatory evidence” as we can see more in our latest Ripple news today.
The legal dispute between SEC and Ripple is going on full force as the payment processor requested from the regulator to produce documents on Ethereum and Bitcoin as they are deemed not to be securities. At the same time, thousands of holders asked the federal judge to serve as third-party defendants as well. Ripple seeks documents in the latest developments of the lawsuit which came to light a day after the new letter sent to Judge Analisa Torres.
Ripple’s lawyers asked Judge Torrest to demand from the Securities and Exchange Commission to produce documents on the agency’s perception and definition of the biggest cryptocurrencies. Ripple claimed that the “Economic substance” of transactions completed with the token is no different than that of ETH and BTC but the SEC responded fast and said that the documents on both cryptocurrencies are not relevant to the case.
According to Ripple, the Commission was “withholding potentially exculpatory evidence” and the lawyers said that based on that information, the SEC was told by “sophisticated market participants that XRP was not a security.” As the team of lawyers commented:
“Learning all there is to learn about these facts (whether through internal or external communications) is relevant to the defense and will be central to the Court’s understanding several issues critical to the case.”
Another development came earlier today with over 6000 holders of XRP’s native token petitioned to participate in the lawsuit as well. The representative of Deaton Law Firm LLC John Deaton filed a motion and presented a case that the lawsuit will harm the token investors and not just the company:
“It is not just Ripple’s current distribution of XRP that is at issue, but whether present-day XRP owned by XRP holders are considered securities because most US exchanges have delisted and/or suspended XRP trading entirely, thereby causing the XRP held by XRP holders untradeable and, thus, useless.”
Deaton added that the XRP investors are not represented adequately in the case and they as holders “cannot objectively rely on Ripple’s efforts either.”
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